Struggling with Appraisal Ratings? How Do They Impact Salary Hikes?

Please help me with how to calculate appraisal ratings: 5=Excellent, 4=Very good, 3=Good, 2=Satisfactory, 1=Poor.

Question Ratings

Question 1: Rating - 3
Question 2: Rating - 4
Question 3: Rating - 4
Question 4: Rating - 2
Question 5: Rating - 4

(3 + 4 + 4 + 2 + 4) / 5 = 3.4

Determining Salary Hikes Based on Ratings

How will this be used to determine salary hikes based on ratings? Are there any other methods available? Please help me.

Regards

Performance Appraisal Criteria and Ratings

Generally, in an appraisal form, there are certain criteria or parameters available. Factors include:

1. Attendance
2. Punctuality
3. Interpersonal relationships with superiors, peers, and subordinates
4. Job knowledge
5. Ability to work under pressure

Ratings are also assigned. The performance of the employee against each factor is measured, and suitable ratings are given. There should also be a column for "Overall rating" in the appraisal form, and a suitable rating should be provided. The quantum of increment for each rating is available in any organization as per their performance appraisal policy. For example:

- Rating No.1 (Poor) - no increment
- No.2 (Satisfactory) - minimum increment
- Rating No.3 (Good) - higher increment
- No.4 (Superior) - higher than rating No.3
- No.5 (Exceptional) - more than rating No.4
- No.6 (Outstanding) - more than rating No.5

Increment should be given to the employee based on this overall rating.

Performance Appraisal Process

A performance appraisal should be conducted by the employee's immediate manager and reviewed by the manager's manager. The appraisal form should be approved by the HR Head as well as by the Unit Head/GM/ED/CEO, as the case may be.

Thanks.

Regards,
R K Nair