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What is Employee Performance Appraisal Policy ?

Employee Performance Appraisal Policy
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
56 to 60
61 to 65
66 to 70
71 to 75
76 to 80
81 to 85
86 to 90
91 to 95
95 to 100

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%
86 to 90%
91 to 95%
96 to 100%

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

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.

Maximum attainable score
Quality of work and awareness about quality
Integrity and character

Section C:
Service tenure has been graded as follows:

Score on 10
0 to 1 year
1.1 to 2 years
2.1 to 3 years
3.1 to 4 years
4.1 to 5 years
5.1 to 6 years
6.1 to 7 years
7.1 to 8 years
8.1 to 9 years
9.1 and above

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
33 to 34
35 to 36
37 to 38
39 to 40

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.


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

Engr. Kh. Mashiur Rahman Email: garmentspedia@gmail.com

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About Author:

He is Garment Business ERP Consultant and Digital Marketing Consultant of RMG factories. He is certified Echotech Garment CAD Professional-China, NCC-UK and M.Sc. in CIS- London Metropolitan University. He is also authorized re-seller of Apparel ERP software companies

Contact: Twitter | Facebook | Google-Plus |Cell#+8801792525354 Email:apparelsoftware@gmail.com

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