Understanding Performance Appraisal: How Do We Set Percentages in Manufacturing?

Preeti Pote
Dear All, please help me understand the factors that we consider in performance appraisal. How do we define a percentage for an individual in the manufacturing industry?

Thank you.
NK SUNDARAM
First, identify Key Result Areas (KRAs) for each job role and assign weightage based on the tasks and responsibilities. The total weightage of the KRAs should equal 100%. Create a factor for each goal, calculating the ratio of Goal versus Achievement. Multiply the Achievement by the factor to obtain the Goal versus Achievement total.

Best wishes
sripadhr
Key Factors Considered in Performance Appraisal for Manufacturing:

1. Productivity and Efficiency
2. Skills and Competencies
3. Adherence to Safety Standards
4. Attendance and Punctuality
5. Teamwork and Collaboration
6. Innovation and Continuous Improvement
7. Training and Development
8. Customer Satisfaction/Client Feedback

Weighted Scorecard Approach to Quantify Performance:

1. Define Weightages for Each Factor:
- Productivity and Efficiency: 30%
- Quality of Work: 20%
- Adherence to Safety Standards: 15%
- Attendance and Punctuality: 10%
- Teamwork and Collaboration: 10%
- Skills and Competencies: 10%
- Innovation and Continuous Improvement: 5%

2. Assign Ratings:
Each factor is rated on a scale, say from 1 to 5 (1 being poor and 5 being excellent). Supervisors assess employees based on their actual performance.

3. Calculate the Weighted Score:
For each factor, multiply the rating by the corresponding weightage. For example, if an employee scores:
- Productivity and Efficiency: 4 out of 5 = 4 × 30% = 1.2
- Quality of Work: 5 out of 5 = 5 × 20% = 1.0
- Adherence to Safety: 3 out of 5 = 3 × 15% = 0.45
And so on.

4. Sum the Weighted Scores

5. Apply Rating Brackets:
Once the performance percentage is calculated, this can be mapped to rating brackets that define salary increments, bonuses, or promotions:
- 90-100%: Outstanding
- 75-89%: Exceeds Expectations
- 60-74%: Meets Expectations
- Below 60%: Needs Improvement

By focusing on productivity, quality, adherence to safety, and other relevant factors, manufacturing companies can create a comprehensive and fair appraisal process.
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