Hi Anita,
A humble piece of advice for you would be to conduct a thorough analysis of the various departments, branches, work targets, and employees of the company for which you intend to implement the PMS.
You can create a performance assessment questionnaire, which you can easily find on Citehr or anywhere on the web. Select or customize the best set for your needs.
Have the form completed by the employee, their superior, Head of Department (HOD), the CEO or Chairman, and then provide your comments.
Next, choose a method to analyze the completed forms. If your PMS form assigns ranks or numbers, base your employees' increments on the points/ranks they have earned.
Create a table correlating ranks with percentage increments. For example, if Ram scores 8 points, he receives an increment between 15-20%, while if Sham scores 5 points, he gets an 8-10% raise. If Radha scores 3 points, she may not receive any increment for the year or could even face demotion (which is a rare and severe scenario).
Through the PMS, you can also identify whether employees are performing well, if they require any training, etc.
I hope this information is helpful.
Regards,
Parul