Performance Appraisal And Salary Revision Are The Same Or Different

Dear Friends,
Please answer my question, "Performance Appraisal and Salary Revision are same thing or different?".
Santosh M.

Both are different. Performance appraisal is held at regualr intervals where in increments are linked to the performance of the employee concerned and thus peformance appraisals are individual in nature . Salary revision is the result of wage fixation through collective bargaining by the union usually after the expiry of the existing award or settlement on wage fixation. thus slary revision is universal in nature and is linked to factors like cost of living and industry norm etc.
B.Saikumar
HR & Labour Law advisor
Mumbai

Performance Appraisal is a process while Salary revision is the outcome of a Performance Appraisal. Both are key elements of a Performance Management System.

There are different reasons for salary revision:

1. Inflation driven revision - given to match cost-of-living

2. Service increment - usually a flat % given across the whole company; non-performance related. Item 1 may fall into this category.

3. Market catch-up revision - it is determined that the current pay structure of the company is lagging behind the market/industry, so an additional component (on top of the service increment) is given to catch-up with the market in order to be competitive.

4. Merit increment - additional component (on top of the service increment) given to recognise above-average performing staff.

5. Probation revision - when a company has a probation policy that state a salary revision of certain % or amount will be given if new hires successfully completed stipulated probation period.

6. Promotion revision - when a company has a promotion policy that state a salary upgrade (from one grade to another) to recognise an enlargement of job scope.

Have a positive weekend.

Autumn Jane

Dear Elders,
Thanks for the info. I will be happy if you can send me a an ideal performance appraisal form for a restaurnat fast food company.
Best Regards,
John , KSA

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