Dear Siva, Every company has its own way of working. The basic idea is to design various performance slabs. Quantification of performance slabs can be seen in the following ranges: - Above 85% - 75-85% - 65-75% These slabs are better than subjective rating slabs like "Excellent", "Very Good", "Good", etc. The latter leaves more room for manipulation than the former. Regarding adding extra weight to the higher slabs, I do not believe it will bring any significant change. The essence of a Performance Management System (PMS) lies in giving primacy to the organization's performance, identifying costs or ratios associated with the business, and assigning them to the respective Heads of Departments (HODs). HR or the company's leadership may pull a rabbit out of their hat, but at the same time, they must ensure that the principles of the PMS are not diluted in any way. Thanks, Dinesh Divekar