How Effective Is a Documented Appraisal System in an IT Company Already Offering Performance-Based Increments?

I had to start the system of appraisal of the employees. Now my query is: How beneficial is the appraisal system to the company? Is it really going to affect the employees as this company is already giving annual increments based on performance, but nothing is documented as such? Please let me know how effective the implementation of the appraisal system is in a documented format for the company and the employees.

Yes, an appraisal system in a scientific way with proper documentation is indeed necessary. It allows companies to monitor their employees’ performance in a systematic way, which is very important for business productivity. It also eliminates any sense of discrimination or favoritism that an employee may feel if the appraisal system is not conducted in a systematic order.

Regards,
Umm-E-Abdullah

Benefits of a Performance Management System (PMS)

A PMS will enable you to:

• Arrive at rational criteria in deciding the quantum of salary hikes.
• Find out the areas of weakness of an employee and address them.
• Know the nature of skills that are available with you - you can prepare a skills inventory.
• Assess training needs of employees.
• Identify star performers and recommend them for promotions.
• Depending on the size of the organization, help deploy employees at the point of need having regard to the competencies and skills.

Hope this helps.

Regards,
B. Saikumar

Thank you all for your valuable inputs. Since I need to design the system of performance evaluation, will it be the same for all staff or job-specific?

Job-Specific Evaluation Parameters

If it has to be job-specific, then:

1) What will be the general parameters and job-specific parameters?

2) In an IT company where the timely completion of projects is very important, what importance should be given to punctuality? Because if the staff is staying late, how important is coming on time for duty?

3) Should the appraisal of staff be done at one particular time, or should it vary for each employee? When we tried to do it at one time, there was a lot of resentment among staff. In that case, how can we convince the staff that appraisals will be done only at one specific time?

Regards,
S. Chopra