Dear R Mohana Sundaram,
As suggested above, in order to correctly guide you through the process, one does need more minute details related to working structure of company.
However, if you wish to have a broad outline:
Firstly - many tend to use the phrase performance management and performance appraisal interchangeably. That is the core difference between a well managed bench of second line talent and ready talent.
Performance Appraisal is done as a post procedure to evaluate assess and inform.
Performance management on the other hand is about putting in the steeping stones for the people, so that they can reach their goal which will then be evaluated, assessed and informed.
Performance management wins hands down if you wish to better the environment. A few steps that I can suggest for this are :
a) Start with defining talent requirement, their JD's, outcome required.
b) Make SMART (specific, measurable, attainable, realistic, time bound) goals (remember measurable is the key here)
c) Then you give a weightage to each goal
d) You will at this point need to define what is the standard that you require for the organisation
e) Discuss these with hod's , line managers and finalise.
f) In a PMS - evaluation is not done only at end of year, but frequent feedback, discussions are requires throughout and they should be documented.
g) Make the form for the evaluation structure, interim meeting formats, Improvement plans.
When you set and communicate clear goals, expectation and most importantly evaluate and Review at frequent intervals with feedback follow up , the end results are much more visible. transparency instils confidence and does wonders as a motivation factor too. Performance management is like doing home study throughout the year rather than just for the finals :-)
The forms required will need to developed with IN house discussions and is very company ,process specific. If you wish to view one, a generic search should help.
Hope this helps.
Warm Regards,
Deena Jagasia
References - Peter Drucker ; George T Duran