Is Performance Appraisal Worth It Without a Pay Raise? HR Leaders, Share Your Insights

Hi Colleagues, Recently, our HR Team has been challenged by an operational HOD on the principle, process, and objective of PMS. Accordingly, he claims:

1. Appraisal is only worth doing if it impacts an increment; otherwise, it is a waste of time.
2. All corporate majors (he tried to say TATA Motors as he was an ex-GM there) ignore ratings of self-appraisal when considering an increment.

I would request all HR members directly leading the PMS activity in their organization to share their best practices to help me counter such detrimental positioning in an evolving organization. Look forward to hearing from everyone.

Understanding Performance Appraisal (PA) Process

First and foremost, what exactly is the process of Performance Appraisal (PA) in your company that we do not know? Objections like this arise if the process is not uniform across the organization.

Clarifying KRAs and KPIs

Secondly, even if the process is uniform, what are the KRAs? Many times, people do not know the basic difference between KPIs and KRAs. Thirdly, do the KRAs pass the test of the SMART principle?

Specific Inquiry on Operations Head

Please specify the KRAs of the Operations Head. Why does he want to delink ratings of the PA and the salary increase? Just because his ex-company did it, you don't have to do it.

Thanks,

Dinesh Divekar