hello viewers,
Actualy appraisal method is generaly followed in Bi annual and Annual basis.this is major draw back of the system. why we have to wait for such a long period ?
It is possible to make monthly basis ?
I ask our professional regarding this and give ur valueable ideas and suggestions
murali krishnan
From India, Madras
1Actualy appraisal method is generaly followed in Bi annual and Annual basis.this is major draw back of the system. why we have to wait for such a long period ?
It is possible to make monthly basis ?
I ask our professional regarding this and give ur valueable ideas and suggestions
murali krishnan
From India, Madras
If you are talking about reviews which translates to growth in salary and position than its not possible for organisations to have it on a monthly basis, However if its evaulation on performance, you can make it task based and on time, this can happen in a week or month.
PERFORMANCE APPRAISAL.
Most companies make this grand error of using performance
appraisal as a tool for making salary review.
Performance appraisal / Performance management system are
tools for employee developement.
Under the current management system, salary increase
is given to everybody--say 5% to cover inflation rise etc.
When it comes to merit increase, then the performance
overall is considered.
At that time , performance appraisal is not done but
the overall performance for the 12 months is considered
and exceptions noted.
Linking / Conducting performance appraisal at the salary
review is bad news. Because 11 months good performance
could be damaged by the last month poor performance,
as the current perception lingers on / influences the
decision.
DURING MY CONSULTING CAREER, I ALWAYS EMPHASISED
TO THE MANAGEMENT THE NEED FOR / IMPORTANCE OF
SEPARATING THE TWO.
REGARDS
LEO LINGHAM
From India, Mumbai
Most companies make this grand error of using performance
appraisal as a tool for making salary review.
Performance appraisal / Performance management system are
tools for employee developement.
Under the current management system, salary increase
is given to everybody--say 5% to cover inflation rise etc.
When it comes to merit increase, then the performance
overall is considered.
At that time , performance appraisal is not done but
the overall performance for the 12 months is considered
and exceptions noted.
Linking / Conducting performance appraisal at the salary
review is bad news. Because 11 months good performance
could be damaged by the last month poor performance,
as the current perception lingers on / influences the
decision.
DURING MY CONSULTING CAREER, I ALWAYS EMPHASISED
TO THE MANAGEMENT THE NEED FOR / IMPORTANCE OF
SEPARATING THE TWO.
REGARDS
LEO LINGHAM
From India, Mumbai
hi leo
i have been looking at the variable pay compensation package at the organisation where i am doing my summer project. It consist of two parts - individual performance and company performance. as your grade increases in the organisation hierarchy, the weightage of company performace starts increasing. for eg. the weigthage of company performace for a Executive Director is 50%and 50% for individual performance.
the criteria used for measuring company perfomance is EBIDTA, as this the the ultimate goal that all the departments in the organisation works for
just wanted to know your opinion on this. is there any other criteria that can be added like production, sales, etc. also can the company performance mearsurement criteria be different for different departments in the same organisation.
Can EBIDTA be considered as a universal measrurement for any organisation across sectors
Regards
Sajita Nair
From India, Mumbai
i have been looking at the variable pay compensation package at the organisation where i am doing my summer project. It consist of two parts - individual performance and company performance. as your grade increases in the organisation hierarchy, the weightage of company performace starts increasing. for eg. the weigthage of company performace for a Executive Director is 50%and 50% for individual performance.
the criteria used for measuring company perfomance is EBIDTA, as this the the ultimate goal that all the departments in the organisation works for
just wanted to know your opinion on this. is there any other criteria that can be added like production, sales, etc. also can the company performance mearsurement criteria be different for different departments in the same organisation.
Can EBIDTA be considered as a universal measrurement for any organisation across sectors
Regards
Sajita Nair
From India, Mumbai
SAJITA,
EBIDTA is universally used to evaluate the value of company.
To rate the company value, investors apply a multiplying factor from 10 to 20
times the value of EBIDTA , depending on the company image/products/etc.
If the EBIDTA is 25mill dollars, the company could be valued [ 250mill to 500mill]
HENCE EBIDTA is a valued criteria, and an executive director can make significant
contribution to EBIDTA.
The individual performance criteria could be other factors like,
1.EXECUTIVE DIRECTOR -SALES
-MARKET SHARE
-SALES
-GROSS PROFIT
------------------------------------------
2. EXECUTIVE DIRECTOR -MANUFACTURING
-PRODUCTIVITY
-QUALITY IMPROVEMENTS
------------------------------------------
3. EXECUTIVE DIRECTOR - FINANCE
-ROI
-DEBTOR CONTROL
-----------------------------------------
etc etc
=======================================
REGARDING YOUR THIRD QUESTION RELATED
TO PMS--
COULD YOU PLEASE SEND YOUR EMAIL,
AS I HAVE TO ATTACH AN EXCEL FORMAT.
REGARDS
LEO LINGHAM
From India, Mumbai
EBIDTA is universally used to evaluate the value of company.
To rate the company value, investors apply a multiplying factor from 10 to 20
times the value of EBIDTA , depending on the company image/products/etc.
If the EBIDTA is 25mill dollars, the company could be valued [ 250mill to 500mill]
HENCE EBIDTA is a valued criteria, and an executive director can make significant
contribution to EBIDTA.
The individual performance criteria could be other factors like,
1.EXECUTIVE DIRECTOR -SALES
-MARKET SHARE
-SALES
-GROSS PROFIT
------------------------------------------
2. EXECUTIVE DIRECTOR -MANUFACTURING
-PRODUCTIVITY
-QUALITY IMPROVEMENTS
------------------------------------------
3. EXECUTIVE DIRECTOR - FINANCE
-ROI
-DEBTOR CONTROL
-----------------------------------------
etc etc
=======================================
REGARDING YOUR THIRD QUESTION RELATED
TO PMS--
COULD YOU PLEASE SEND YOUR EMAIL,
AS I HAVE TO ATTACH AN EXCEL FORMAT.
REGARDS
LEO LINGHAM
From India, Mumbai
hi murali
there are few organisations who conduct monthly appraisals for higher level employees i.e. GM & above upto ED level.
i am a PG student currently doing a project on PMS in a steel making organisation. here the appraisal for the GM & abve cadre employees is done on a monthly basis by the reporting officer and reviewd quarterly by the reviewer.
the logic for conducting montlhy appraisals for these employees is becaouse of the criticality of their positions and the contribution to the business decisions and goals of the companies.
for employees below GM & below the appraisal is conducted quarterly...to check if their performace is is track with the goals
Regards
Sajita Nair
From India, Mumbai
there are few organisations who conduct monthly appraisals for higher level employees i.e. GM & above upto ED level.
i am a PG student currently doing a project on PMS in a steel making organisation. here the appraisal for the GM & abve cadre employees is done on a monthly basis by the reporting officer and reviewd quarterly by the reviewer.
the logic for conducting montlhy appraisals for these employees is becaouse of the criticality of their positions and the contribution to the business decisions and goals of the companies.
for employees below GM & below the appraisal is conducted quarterly...to check if their performace is is track with the goals
Regards
Sajita Nair
From India, Mumbai
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Employee Appraisal Form new.doc