Hi!
I have worked in BPO, wher this method was applied in PA.
They did the following activities.
1. They divided the entire work force into following percentage.
a) 5-8 % with rating 5 [ Top rankers- Excellent,Exceed expectation.]
b) 12-15 % with rating 4 [ next level rank- Good]
c) 70% with rating 3 [ Satisfactory performance]- Achieved expectation]
d) 10-12 % with rating 2 [ Needs improvement, have the potential to do better]
e) 5-8% with rating 1 [ Poor performance, continuously missing targets, to be put in PIP]
2. Then they divided the process according to thier sensitivity to the client into ranks. eg: If there is a process with assigning of cheques, even if the process is not a voice based one, was given the highest ranking.It was decided so because, a mistake of puting one extra zero in a cheque can create a big loss to the organization.
3. After the performance appraisal ranking was done by each individual process, they redivided the budget of every process into the ranks allocated to each process.
eg : the process assiginig cheques would have the highest budget, followed by the next process.
4. Thus they divided budget among the individual team members in each process according to thier individual rank .
eg : If the buget allocated to a process is 50 lacs,
then the top ranker with a rating of 5 will get a hike of nearly 35-40 thousand.
Again the buget for different ranks depended on the number of team member in the process.
I hope I have answered your question, If not, Please let me know.
I will surely try !
Regards
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