Suggestion For Revise Performance Appraisal And Increment

Dear all Seniors....
I would like to take one suggestion from you. I am working as a HR in IT company since last one year, we are having 25 employees.Actually we are thinking to revise our Appraisal policy.
Till now we have pattern like: For a new joinee the appraisal is conducted two times(6 months) in the first year and after that yearly. And Increment amount will be decided by our Departmental head on the basis of performance but not on the basis of fix percentage or criteria,they are giving what they feel is appropriate.
Now, I would like to know few things:
1. How all companies are conducting their performance appraisal? (whether it is on the basis of employee's joining period or on the particular month all the appraisal will be conducted?)
2. How the Increment amount is decided on the basis of appraisal?
Seniors and my friends, guide me how you all are conducting Effective Performance Appraisal?
-Thanks In Advance:
Sneha

Hi Sneha,

Your question is very important for new Hr people.

Ans. 1) Normally the period of Appraisal is different from company to company. Some companies are going for appraisal in the particular month (Like financial Year) and some other companies follow a joining period of employees. Also company can do this at half yearly. It is depend upon company policy.

Ans. 2) Increment amount is totally depend upon the method of appraisal (Performance). The method defined by Management is responsible for increment amount. It can be define as fix rate or percentage as per the performance.

If we decide the Increment amount is 5000 for 100%. one employee is got 60% as per performance. so his increment amount is 3000 as per pay system.

In this case there are lots of criteria to define a Increment pay system. there are also some weight age for that.

Here lots of important topic regarding appraisal so please see the below link

https://www.citehr.com/143176-perfor...l-moderan.html - For Appraisal Method

https://www.citehr.com/321683-360-de...uccessful.html - 360 degree Method 3

https://www.citehr.com/114469-forms-...tml#post466448 -Appraisal Form

for more details you can get in touch.

Regards,

Hardik

Hello Hardik,
Thank you so much for giving me your valuable suggestion. and the links which you had given me were really good.
My question is that according to Departmental head and employees, filling the sheet is not technical its mere a formality nothing else and its a time consuming for them. So, "where its need to change so technically they are taking it seriously?"
One more thing might be anyone would like to say that I should make them understand the importance but for them these all is not require for increment and for counting performance.
- Sneha