Hi everyone, I am working as an Executive in HR & Administration in a manufacturing firm with a 42+ employee strength. I joined a month ago, and prior to this organization, I was associated as a Recruiter and HR Trainer in a consultancy. I am a commerce graduate but am aware of most things in HR. Additionally, I have sound knowledge of various performance appraisal methods but haven't used them practically.
My current organization has no performance appraisal system, and I am in the process of setting up a new one. Could anyone please guide me on the easiest process and practical implications of performance appraisal?
Also, what is the minimum/maximum hike given or practiced in India?
Thank you.
From India, Mumbai
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1My current organization has no performance appraisal system, and I am in the process of setting up a new one. Could anyone please guide me on the easiest process and practical implications of performance appraisal?
Also, what is the minimum/maximum hike given or practiced in India?
Thank you.
From India, Mumbai
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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 informed about when their appraisal will take place. The salient features of the policy could be as follows:
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 October.
b) For employees who join in between, the timing of their first PA can be decided in the policy.
c) The percentage of salary hike should be linked to the score of the PA.
The important point is that 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 the Performance Management System (PMS). Earlier, I have clarified the difference between the two. You may click the following link to know the difference:
https://www.citehr.com/286426-kra-sh...ml#post1294358
While designing KRAs, please remember the following formula:
Job Description + SMART Principle = KRAs
Click on the hyperlink to know about the SMART Principle
In one of my posts, I have uploaded Sample KPI and KRA Manual. You may refer to the following link to download it:
https://www.citehr.com/520630-samle-...-download.html
Final Comments: Designing KPIs and KRAs is not that easy. To do this, you need to work with an expert, and to gain expertise, it takes years. I have seen professionals spending decades in the industry but were unable to develop KRAs for their department.
For further doubts, you may call me on my mobile number.
Thanks,
Dinesh Divekar
From India, Bangalore
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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 October.
b) For employees who join in between, the timing of their first PA can be decided in the policy.
c) The percentage of salary hike should be linked to the score of the PA.
The important point is that 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 the Performance Management System (PMS). Earlier, I have clarified the difference between the two. You may click the following link to know the difference:
https://www.citehr.com/286426-kra-sh...ml#post1294358
While designing KRAs, please remember the following formula:
Job Description + SMART Principle = KRAs
Click on the hyperlink to know about the SMART Principle
In one of my posts, I have uploaded Sample KPI and KRA Manual. You may refer to the following link to download it:
https://www.citehr.com/520630-samle-...-download.html
Final Comments: Designing KPIs and KRAs is not that easy. To do this, you need to work with an expert, and to gain expertise, it takes years. I have seen professionals spending decades in the industry but were unable to develop KRAs for their department.
For further doubts, you may call me on my mobile number.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(1)Amend(0)
Understanding Rating Scales
If you are interested in learning about rating scales, read about Likert Rating scales (found on the internet, although it's best to find a book at the library). Marketing and brand managers are quite familiar with Likert scales.
Developing a Performance Appraisal System
As for developing your own performance appraisal system, you may want to read up on competencies assessment programs. Once you have decided on the factors to be used for different categories of employees, you may consider using SPSS software to validate and verify your rating factors. Get your IT experts to help you, as SPSS is a very powerful and useful tool for HR professionals.
From Singapore, Singapore
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If you are interested in learning about rating scales, read about Likert Rating scales (found on the internet, although it's best to find a book at the library). Marketing and brand managers are quite familiar with Likert scales.
Developing a Performance Appraisal System
As for developing your own performance appraisal system, you may want to read up on competencies assessment programs. Once you have decided on the factors to be used for different categories of employees, you may consider using SPSS software to validate and verify your rating factors. Get your IT experts to help you, as SPSS is a very powerful and useful tool for HR professionals.
From Singapore, Singapore
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Performance Appraisal System.docx
A SIMPLE STUDY ON PERFORMANCE APPRAISAL SYSTEM.ppt
TEACHER PERFORMANCE APPRISAL SYSTEM.zip