Hi,
I hope below mentioned steps will help you in designing appraisal policy for your organization-
Set Appraisal objectives and policies - First of all you need to set objectives of your performance appraisal and then based on these objectives you need to set policies for the same i.e, eligibility criterion, period of appraisal(annually, half yearly, quarterly), define promotion and increment policies separately etc.
# Ensure full confidence of top management while making policies.
Derive Performance appraisal technique - Out of several techniques for performance appraisal you need to derive one technique for the appraisal based on the nature of your organization (360 degree appraisal, ranking or grading method etc)
Prepare Appraisal form - Now you need to make an appraisal form/Questionnaire used at the time of appraisal. For this form you need to set the attributes of the employees performance on which you want to proceed with your appraisal, like Productivity, Quality of work, Punctuality, Attendance, Grooming etc.
Conduct Appraisal - Now final step is to conduct appraisal at the designated time, please ensure timely completion and strict confidentiality of the data at the time of appraisal.
For your better understanding I will give you a simple procedure you may edit/modify the same as per your wish -
1- Conduct appraisals at the end of financial year, that means in the month of March and make increment and promotion effective from 1st April of the coming financial year. For eligibility you may use minimum of 6 months tenure as a parameter or you may also do appraisal for every employee employed till February, In that case you need to increase the salary on pro rated basis. For example if an employee joined in the month of December and is entitled for 15% Hike, he will be getting increment of 15% for 3 months out of 12 months.
2- You may use grading method for your appraisals, for this you need to segregate the groups of your organization, easy will be segregate on the basis of departments. Now make a list of the employees for each department and write the attributes of appraisal in front of the names. Now you need to take feedback of reporting manager on the form on the basis of grades (A,B,C,D), you may take final grading by the departmental head (preferred). You may also ask the departmental head whether the particular employee is eligible for promotion or not.
3- Now you will get the final grading for all employees as A, B ,C ,D now set the %age of increments for these grades like A - 20%, B-18%, C- 15%, D-10% .
4- Next step will be releasing the promotion and increment letters to the employees.
I hope this process would have simplify appraisal procedure for you.
Regards
Ashutosh