Hi All,

Query: We belong to IT company. I have to standardize the Performance appraisal form by giving some
formulaes. So that Employees can calculate themselves about their increment. I have been asked to assign
some weightage in the form of Percentage. I know there are different different methods for this &
depends upon company to company.

For your reference, We are rating employees on 4 point scale. There are 10 columns for KRA against
which Employees rating & Manager ratings are written. There are 12 columns for Core values &
Leadership Skills.

Now I want some formulaes so that employees can calculate themselves that they got appraisal of 10% ,
20% or whatever amount of perecentage.

I have tried some formule. Please correct me if am wrong.

FORMULA : We will calculate Total Rating by adding all the KRAs 's ratings of Manager & then Divide
"Total Rating" by 10 = Average rating "A"

Same with "Core Values & Leadership Skills" There are 12 columns for it. Then we will add the Manager
rating & Divide "Total Rating" by 12 = Average rating "B"

FINAL RATING CALCULATION : I have assigned 60% Weightage to "Average Rating" A & 40%
Weightage to "B" ( Because Average rating A is related to employees tasks thats why 60% weighatge is
assigned & 40% assigned to "B" related to Core values & Leadership skills")

Average Rating "A" : 60%

Average Rating "B" : 40%
Final Rating C = A* 0.6 + B* 0.4
If C = Tick appropriate box to confirm Final Rating & associated Performance Indicators.(PI Denotes to
Performance Indicators)
a) 3.50 - 4.00 Outstanding( 2PI) b) 2.50 - 3.49 Very Good ( 1PI)
C) 1.50 - 2.49 Good ( 1PI) d) 0- 1.49 Improvement Needed ( 1PI)
I want to convert 2 PI , 1PI into some standardize Percentage So that at glance, Employees get to know
that how much they got appraisal in the form of Percentage.
 #2

Dear Swati,
As per your post,firstly KRA of employee should be SMART.
A Smart Goal (KRA)
1.Specific : Clearly stated what to do and how to do?
2.Measurable: States how the performance will be measured.
3.Agreed: Goal targets are agreed between the manager and employee.
4.Realistic: Is relevant to the employees job role and to the organization.
5.Time Bounded: States a time frame.
Enclsoed KRA 1st sheet for the more clearity.
Regards
Dev
#3

Hello,
Based on the information shared, I find that you have adopted a decently professional approach.
However since you are into KPA based Performance Appraisal System I suggest you look at following
suggestions.
1) Are detailed "job profiles" for each job in place?
2) Normally we ensure the each KPA is aided by "targets", "performance indicators" and then
"weightages".
3) I suppose KRAs, Targets and the Performance Indicators are decided jointly by the Appraiser and the
Appraisee.
4) I also suppose "measurability" of performance is a settled issue in your system.
5) How about "identification of training needs"?
6) And one off excellent performance on a special assignment?
This is just by way suggestions. Need clarification. do not hesitate to take contact.
Regards
samvedan
January 16, 2015
-----------------------

#4
 Hi
I understand from your question that you are seeking guidance on distribution of increments or rewards
and not the overall performance management process.
Your approach is good to arrive at the performance indicators.
In my experience, increments are a function of budget which vary from year to year and depends on
number of people who are rated in each category. In all organizations, the increment is communicated
separately so that affordability can be determined by CEO, CFO and HR head. Once it is finalized then
you can decide to publish gradewise, performance indicatorwise increment matrix to all or just to
managers. Typically, you will have to create a grid and apply to salaries of all to compute total impact of
increment for the whole company. So delink the increment with performance indicator
22nd January 2015 From India
 VALID
#5

swati pls share your KRA Form then it would be easier to drive the formula for PI and will help the all
members
20th June 2016 From India, Mumbai
 VALID