Dear friend,
What is your product or service? It appears that you do not have a proper Policy on Performance Appraisal (PA) well in place. When employees join the company, during induction itself, they should be told when their appraisal will take place. The salient features of the policy could be as below:
a) Appraisal may be done quarterly. An appraisal cycle of one year is too long. Nevertheless, a salary hike may be done on 1st April or 1st Oct.
b) Employees who join in between; when their first PA will take place can be decided in the policy.
c) The % of salary hike should be linked to the score of PA.
The most important thing is obtaining buy-in from top management on this policy. It should not remain just on paper.
There is a lot of misconception on the concept of KPI and KRA. To remove this misconception, I have uploaded my presentation on YouTube. To refer to that video, you may click here:
click here.
The important point is PA concentrates only on individual performance. We need to go beyond and measure business performance. For this, you need to have a well-designed policy on Performance Management System (PMS). There was a query in this forum on PMS. I have given a reply to this post. Click the following link to refer to the reply:
https://www.citehr.com/511936-pms-company.html.
To know more about instituting PMS in the company, you can click here to refer to my past post:
click here.
Though the heading of the heading is for IT companies, the reply is applicable to all types of industries. In the above link, you will find several other links. Go through all the links patiently. It will improve your awareness of the subject.
I handle consulting on PMS. To know more about my services, you may click here: [url="https://docs.google.com/presentation/d/1a4PoJW1CgnX-CdaGecTZ3xQXfTyPgp0l5vrcFJddsw4/edit#slide=id.p30"]. Talk to your management, and if they are ready, then we may work together. If you hire my services, I will do a deep study of each department and design new measures which hitherto you had never thought of.
Thanks,
Thanks,
Dinesh Divekar