Performance Appraisal System [Thread 515605]

Hi everyone,

I am working as an HR Executive (Fresher). Now, I am confused about the Performance Appraisal system. I had no platform to learn this from my company. Now, I am the one who needs to set up a Performance Appraisal System for our company with an employee strength of 20+.

It would be great if someone could help me out. I also need information regarding the calculation of Basic salary/HRA/DA/PF/ESI/Professional Tax!

Thank you.

Dear Rahul,

You may refer to my past replies. I have given several responses.

Dinesh Divekar

Dear Rahul,

It appears that you do not have a proper policy on Performance Appraisal (PA) in place. When employees join the company, during induction, they should be informed about when their appraisal will take place. The salient features of the policy could be as follows:

a) Appraisals may be conducted quarterly. A yearly appraisal cycle is too long. However, salary hikes may be implemented on the 1st of April or the 1st of October.

b) For employees who join in between appraisal cycles, the policy should specify when their first PA will take place.

c) The percentage of salary hike should be linked to the score of the PA.

The key point is that PA focuses solely on individual performance. It is essential to move beyond this and measure business performance. To achieve this, a well-designed Performance Management System (PMS) policy is crucial. There was a query in this forum regarding PMS. I have provided a response to this post. You can refer to the reply by clicking the following link: https://www.citehr.com/511936-pms-company.html

If you have any further doubts, feel free to call me on my mobile number.

Thanks,

Dinesh V Divekar

Hi Rahul,

The following have to be covered in any Performance Management System:

1) Self Appraisal
2) Appraisal by the supervisor/HOD
3) Peer Appraisal

The employee will have to first do a self-appraisal and then, along with his supervisor/head of the department, it has to be reviewed, and the right level of counsel has to be provided. Key Performance Indicators (KPIs) have to be reviewed too.

We can professionally help you in devising your "Performance Management System". PES is an HR Consulting firm with more than 10 years of experience in working with start-up companies. To date, we have worked with nearly 100 start-up companies across India in helping them put together their Performance Management System, Compensation Benchmarking, OD interventions, among others.

Sincerely,
Alfy