Understanding Appraisal Increases: How Do You Calculate Raises Using KRA and Balanced Scorecards?

Hi,

I want to know how we calculate the percentage increase that should be given to an employee based on their score during appraisals. Could someone please forward me the KRA-based and balanced scorecard-based appraisal formats? Can someone explain the balanced scorecard-based appraisal system?

You can also forward data to puru3101@yahoo.co.in.

Regards,
Purva.

Hi,

KRA-based appraisals stand for objective assessment of performance whereby clearly defined objectives as well as performance indicators are used to assess the performance based on actual versus target achievement. The crux lies in defining the objectives, assigning weightage for each objective, and establishing proper measures as KPIs (key performance indicators). Most quantifiable objectives will have easily obtainable KPIs, whereas for competencies, it will be relatively tough.

BSC-based appraisal is a highly complex scenario. Here, the objectives are derived from top management, cascading down to individual levels. Without well-set organizational objectives, the BSC approach will lack appeal and impact on employee assessment.

I am not sure about the existing PMP managed by you. The change process you wish to implement, such as BSC-based appraisal, requires strong commitment from top management. Therefore, it is highly recommended that, to introduce more objectivity in performance assessment, the first step should be to use KRA-based or alternatively MBO-based assessment.

The attachment might be useful to you.

All the best.

Regards

Hi all,

I would like to add a little more on the BSC. Unlike our normal approach of using financial yardstick for measuring organizational performance, the balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data, and analyze it relative to each of these perspectives. The perspectives include:

- The Learning and Growth Perspective
- The Business Process Perspective
- The Customer Perspective
- The Financial Perspective

Essentially, every staff member will have objectives/KRAs cascaded from his/her department/unit objectives which are derived from the organization's objectives under all the four perspectives mentioned above. In some cases, personnel handling partner functions/roles may not have objectives/KRAs under the financial perspective.

This is a very effective and robust Performance Management System.

Regards,
Biju