Dear Seniors,

We are in the auto component manufacturing industry, so I am planning to implement a performance appraisal system. Could you please provide information on how to start and implement this procedure? If you have any templates or examples, please share them with me. This would be helpful as I do not have any previous experience with this system.

Thank you.

From India, Bangalore
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Shivananda, if you search for 'EmpXtrack' on the web, you will find a ready-made performance appraisal solution implemented by many companies in the manufacturing sector. If you share the number of employees you have for whom performance appraisal is to be done, we can guide you on how to proceed further.
From India, Delhi
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Dear Bhatia sir, In our company we have 300 employees and we need implement all the category employees in this appraisal system like staffs, workers, management etc......
From India, Bangalore
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Dear Shivananda,

For the proper Performance Appraisal (PA), you need to have a proper Policy on Performance Appraisal. 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, 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 percentage of salary hike should be linked to the score of PA.

The important point about PA is that it 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). PA is a subset or part of PMS. Therefore, when you wish to launch this major OD initiative, you need to make it comprehensive rather than doing a half job.

To establish PMS, you need to study systems and processes of each department, find out direct and indirect costs associated with the department, and design the KPIs for each department. From these KPIs, you need to devise the KRAs for each department or individual. The other parameters on which KPIs are designed are quality, quantity, timeliness, accuracy, capacity utilization, and so on. But then this is far easier to say than do. It requires immense expertise to do this, and you need to hire some external consultant.

I have been giving my replies on this subject time and again. You may refer to the following links to see my past posts:

- link outdated-removed

- https://www.citehr.com/500549-format...ml#post2165577

- #post2152684

- https://www.citehr.com/498440-how-ca...ml#post2160264

Old: - https://www.citehr.com/490150-job-de...ml#post2140544

I request you to go through each of the above links. It will increase your understanding of PMS.

If you wish to hire my services on PMS consulting, I will help you in bringing the sea change. I will study systems and processes of each department deeply and design unique measures. There could be a few cost-based measures also. You may talk to your management about availing my services. If you wish to know more about my consulting services, you may [click here](https://docs.google.com/presentation/d/1a4PoJW1CgnX-CdaGecTZ3xQXfTyPgp0l5vrcFJddsw4/edit#slide=id.p30) to check the presentation.

Last but not the least, do you have buy-in from your management for this major OD initiative? Is this your own initiative? If yes, then first convince your management about PMS. To convince, you need to measure the cost of poor performance and revenue leakage that took place because of not having a culture of performance.

Thanks,

Dinesh Divekar

From India, Bangalore
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