Hi All,
I am working in a young startup comprising of 50 to 100 employees, and we are planning to implement a performance appraisal system. We are trying to adapt the MBO method and are currently in the initial stages, such as goal setting. As I don't want to mess up the process in the end, I would like to proactively understand the final step, which is determining the appraisal percentage for each individual. I would like to know if there is a specific formula to calculate the appraisal percentage of an individual that considers both the company's and the individual's performance.
Thanks in Advance
From India, Madras
Acknowledge(0)
Amend(0)
2I am working in a young startup comprising of 50 to 100 employees, and we are planning to implement a performance appraisal system. We are trying to adapt the MBO method and are currently in the initial stages, such as goal setting. As I don't want to mess up the process in the end, I would like to proactively understand the final step, which is determining the appraisal percentage for each individual. I would like to know if there is a specific formula to calculate the appraisal percentage of an individual that considers both the company's and the individual's performance.
Thanks in Advance
From India, Madras
Acknowledge(0)Amend(0)
Hi!
Performance Planning (PP) or Goal Setting is the first step in a complete performance management system (PMS). In my PMS, PP refers to the step where the employee and superior (supervisor/manager) sit down together and discuss the major activities to be done and the outputs to be produced/delivered by the concerned employee for a specific period of time (months/quarter/year). Generally, these activities are based either on the actual job responsibilities assigned to the employee or the new mandates by the company pursuant to the business plan approved by the company for the current year.
In performance planning or goal setting, it is important to determine which among the major activities carry more weight or value to the company and which carry less. The total weight of all activities/targets/goals listed must always be equal to 100%.
The idea of determining the percentage of the individual employee vis-a-vis the company and his potential share in the revenues or profits of the company is a matter that is NOT part of PP or Goal Setting. In my PMS, this matter is discussed in the Recognition, Rewards, and Sanction stage because it cannot be determined in advance, as companies would normally decide on the amounts to be shared only towards the end of the corporate calendar year after seeing the actual figures of the company's financial performance. And, the formula (and individual share) can always be set and adjusted depending on the absolute amount that the company has decided to share with the employees as their cash reward (performance bonus/incentives/merit increase).
Best regards.
From Philippines, Parañaque
Acknowledge(0)Amend(0)
Performance Planning (PP) or Goal Setting is the first step in a complete performance management system (PMS). In my PMS, PP refers to the step where the employee and superior (supervisor/manager) sit down together and discuss the major activities to be done and the outputs to be produced/delivered by the concerned employee for a specific period of time (months/quarter/year). Generally, these activities are based either on the actual job responsibilities assigned to the employee or the new mandates by the company pursuant to the business plan approved by the company for the current year.
In performance planning or goal setting, it is important to determine which among the major activities carry more weight or value to the company and which carry less. The total weight of all activities/targets/goals listed must always be equal to 100%.
The idea of determining the percentage of the individual employee vis-a-vis the company and his potential share in the revenues or profits of the company is a matter that is NOT part of PP or Goal Setting. In my PMS, this matter is discussed in the Recognition, Rewards, and Sanction stage because it cannot be determined in advance, as companies would normally decide on the amounts to be shared only towards the end of the corporate calendar year after seeing the actual figures of the company's financial performance. And, the formula (and individual share) can always be set and adjusted depending on the absolute amount that the company has decided to share with the employees as their cash reward (performance bonus/incentives/merit increase).
Best regards.
From Philippines, Parañaque
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Performance Appraisal Form for Staff.doc