Performance Appraisal Policy
This employee performance appraisal policy will cover all employee of the company including
management, though the appraisal of them will be based on a different
mechanism. To ensure that the way that the employees are appraised is in
accordance with principles that are agreed among all, to ensure consistency of
treatment and to ensure fairness in judgment and reward dissemination. Every
organization needs to evaluate the performance of its employees and based upon
that develop a system of rewarding the employees for their work. There needs to
be proper and fair performance appraisal policy for doing this in a way that it is possible to
identify the strengths and weaknesses of an individual and positively reinforce
accordingly.
Employee Performance Appraisal Policy:
- All the employees will be evaluated for their performance once in a year except the Merchandising Department.
- Merchandising department will as a rule experience 2 increments in a year but only once will it lead to a decision about increment or promotion. However for some exceptional performers, 2 increments can be made.
- These appraisals will not happen at the same time but counting 6 month cycles from the date of joining. Hence every month of the year, a certain portion of the company will be undergoing appraisal
- Staffs’ appraisal employee performance appraisal policy –
- Salary increment will not be made at same rate for people of different salary ranges. People who getting high salary will be receiving smaller increment for the same score as compared to somebody who is in lower salary bracket. Following table has been developed according to which the salary increment will be made for all staff across the company
Score on 100
|
For 8000 to 40,000
|
For 40,500 to 80,000
|
For 80,500 and above
|
50 to 55
|
6%
|
5%
|
4%
|
56 to 60
|
7%
|
6%
|
5%
|
61 to 65
|
8%
|
7%
|
6%
|
66 to 70
|
9%
|
8%
|
7%
|
71 to 75
|
10%
|
9%
|
8%
|
76 to 80
|
12%
|
10%
|
9%
|
81 to 85
|
14%
|
11%
|
10%
|
86 to 90
|
15%
|
12%
|
11%
|
91 to 95
|
16%
|
13%
|
12%
|
95 to 100
|
18%
|
14%
|
13%
|
Workers’ appraisal policy –All workers will be divided into 2 basic categories; Helpers
and Operators. For Operators, Quality Inspectors, Finishing Iron Man, Line Iron
Man, Packer Man, Spot Man, Wash Helper, Needle Man, the employee performance appraisal policy is that the
total score of 100% will be divided into 3 segments. First segment will be 60%
and the score will be based on the evaluation of IE Department, second segment
is 30% which will be based on the 4 basic criteria of conduct and the 10% will
be based on the service tenure. Based on this, whatever the score that one gets
on 100, that would correspond to a certain % of increment in gross salary which
is according to the following:
Score on 100
|
% increment to get
|
45% and below
|
5% only
|
46 to 50%
|
6% only
|
51 to 60%
|
7% only
|
61 to 65%
|
8% only
|
66 to 70%
|
9% only
|
71 to 75%
|
10% only
|
76 to 80%
|
12% only
|
81 to 85%
|
14%
|
86 to 90%
|
16%
|
91 to 95%
|
17%
|
96 to 100%
|
18%
|
The 60% score of the performances will be assessed by the IE
and Work Study Departments and will be based on efficiency and productivity of
a person, and score to the grade mapping is as follows.
Section A:
Grade obtained
|
Score to get on 60
|
Super grade
|
60
|
A+
|
55
|
A
|
50
|
B+
|
45
|
B
|
40
|
C+
|
35
|
C
|
30
|
D
|
20
|
Section B:
Quality of work and awareness of the quality, integrity,
behavior and attendance adds up to 30. A person will be out of 7.5 each of the
below 4 criteria and if somebody is able to attain full marks in all of them
that person would attain the score of 30. This section will be evaluated by the
production management of the floor.
Criteria
|
Maximum attainable score
|
Quality of work and awareness about quality
|
7.5
|
Integrity and character
|
7.5
|
Behavior
|
7.5
|
Attendance
|
7.5
|
Total
|
30
|
Section C:
Service tenure has been graded as follows:
Tenure
|
Score on 10
|
0 to 1 year
|
1
|
1.1 to 2 years
|
2
|
2.1 to 3 years
|
3
|
3.1 to 4 years
|
4
|
4.1 to 5 years
|
5
|
5.1 to 6 years
|
6
|
6.1 to 7 years
|
7
|
7.1 to 8 years
|
8
|
8.1 to 9 years
|
9
|
9.1 and above
|
10
|
After getting scores on 60 for section A, on 30 for section
B and on 10 for section C, it is all totaled up to get the score on 100.
For machine helpers, thread cutter helpers, cleaners, loader
man, delivery man, caregiver, cutting helper, finishing helper the scoring will
be done on 40 and the score to increment mapping for these above categories
will be as follows:
Score on 40
|
% increment to get
|
16 to 19
|
5% only
|
20 to 21
|
6% only
|
22 to 23
|
7% only
|
24 to 25
|
8% only
|
26 to 27
|
8.5 % only
|
27 to 28
|
9% only
|
29 to 30
|
9.5% only
|
31 to 32
|
10%
|
33 to 34
|
10.5%
|
35 to 36
|
11%
|
37 to 38
|
11.5%
|
39 to 40
|
12%
|
Workers will be appraised at annual cycle from their last
date of increment.
Regulations & Procedures of Employee Performance Appraisal Policy:
Regulations and procedures for staff appraisal –
- All the job responsibilities of a person will be identified and then the measurement criteria or KPI for each responsibility will be determined. Weights for each responsibility and KPI will be identified. Targets will be specified for the KPIs which are quantifiable. Then there would be a description of the work done for each KPI and then the achieved score will be given, first by the person him/herself, then by the immediate supervisor, and then by HR. The JD based and KPI based portion will be 70% for everyone.
- Everyone will also be measured against 15 general criteria which will carry 30%.
- The total score on 100 will be scaled down and expressed as a percentage on 60.
- The department will be measured as though it was a person, and the score that it would get, would be expressed as a percentage on 40.
- The two above scores would be added to provide the cumulative score of a person.
- The grid according to which the person’s increment would be determined would be set every year and is changeable depending on economic and company situation but would be somewhat as follows.
Regulations and procedures for workers appraisal:
- All workers will be evaluated and appraised by the Work Study and RAW Departments.
- Section B of the appraisal then will be evaluated by the line chief, supervisor and production manager of the section in which the worker is working
- All the data will be transferred to the HR Department who will then attend the score of the last segment and will finally prepare the proposed increment schedule and place it to the Production Director
- The production Direction will ratify it and if the Director feels that there is anyone who needs to be given special incentives or is getting too much by the formula which should be reduced,
- then the Production Director will give his/her recommendation in a separate column along with justification for that
- Then the final proposal will come to the HR Director who will forward it to the Managing Director for the final approval.
- Then the final approval will be forwarded to the accounts department for implementation.
Responsible Parties:
- The HR Department is responsible for generating list every month of the people to be appraised. Also HR department will prepare the appraisal forms and provide to the department heads until the software is capable of doing so.
- In case of staff the department heads are responsible for ensuring that their department’s people do their self-appraisal and the department heads do their round of appraisal for them as well
- Accounts and HR Departments will be responsible for keeping record of the increment
- IE and Work Study Department will be responsible for conducting the appraisal process of the workers
- Production Director and HR Director and also Managing Director will be responsible for approving the appraisal finally
Communication & Implementation:
- Employee performance appraisal policy will be communicated through mail notifications to all and subsequent explanation by department heads to team members
- Also will be explained by HR team members
- Policy book will be provided to all department heads for reference
- IE and Work Study Departments will communicate with the workers regarding their appraisal process
Feedback & Control:
Everyone keeps track of their own cycles and if anyone gets missed, they raise the alarm.
Conclusion:
Some exceptional performers can approach the Work Study Department to do an interim evaluation for their performance if that is found to reflect significant improvement then the person can apply for an increment in less than a year’s time and it will be on digression of the management whether or not to grant the application. If the application is granted then the person will be given an increment before one year cycle has elapse and from that point onward until up to the next year that date on which this ad hoc increment has happened will be the date after one year of which the next increment will be made. Know more about Employee performance appraisal policy
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