iHuman Capital Management

Performance Appraisal or Recognition

Performance Appraisals is the assessment of individuals performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. Identify your employees' strengths and development needs. Set goals, gather contextualized feedback, and review performance, bridging the gap between where employees are and where they need to be and finally merit based salary Increase.

i) Definitions / Settings / Pre requisites


  • Appraisal criteria (Key Result Area (KRA) and Key Performance Area (KPA))
  • Criteria are the items that are going to be rated on an appraisal form. Master list of criteria s as KPAs and KRAs with the weightage are maintained here.

    Key Result Areas rates the performance of either team, department or business unit

    Key Performance Areas rates the performance of individual or group logically responsible.

  • Appraisal criteria (Competencies)
  • Master data of Soft skills, appraisal criteria similar to KPAs/KRAs – Communication, Leadership, Making Decisions, Problem Solving, Punctuality, Self-Motivation, Team Working, Time Management, Initiatives to work, Timely Submissions/ Completion, Work Cleanliness & Order line and more.

  • Criteria groups
  • Role wise Criteria groups will be created - General Appraisal and Skill Metrics. The Groups are formed from the criteria master list. It can then be assigned to employees.

    Tag the qualities that a particular designation or role should have, and make sure that you don't miss out on the employees that have those skills.

  • Rating Scale
  • Rating scales are used to rate the criteria against each employee on appraisal form. This is one of the factor for calculating weighted average score for appraisal score.

    • >Outstanding - Performance far exceeded expectations due to exceptionally high quality of work performed in all essential areas of responsibility, resulting in an overall quality of work that was superior; and either 1) included the completion of a major goal or project, or 2) made an exceptional or unique contribution in support of unit, department, or company objectives.
    • Exceeds expectations - Performance consistently exceeded expectations in all essential areas of responsibility, and the quality of work overall was excellent. Annual goals were met
    • Meets expectations - Performance consistently met expectations in all essential areas of responsibility, at times possibly exceeding expectations, and the quality of work overall was very good. The most critical annual goals were met.
    • Needs Improvement - Performance did not consistently meet expectations – performance failed to meet expectations in one or more essential areas of responsibility, and/or one or more of the most critical goals were not met. A professional development plan to improve performance must be attached, including timelines, and monitored to measure progress.
    • Unsatisfactory - Performance was consistently below expectations in most essential areas of responsibility, and/or reasonable progress toward critical goals was not made. Significant improvement is needed in one or more important areas. A plan to correct performance, including timelines, must be outlined and monitored to measure progress.

  • Rater types
  • Rater types defines the weightage to be given for each rater while calculating performance score.

  • Pay Per performance
  • Pay revision Increment will be decided based on the performance score it falls.

ii) Performance Planning


  • Assessment Period or Appraisal period
  • Performance appraisals happens every year, usually month after the joining month. That said, appraisal date can be changed on ad-hoc basis on a situation when a counter offer need to be issued to stop employee leaving organization.

  • Goal Setting
  • Empower employees to set and share meaningful Performance goals for the period. For this, HR has to choose applicable Criteria-groups to each employees. Setting clear objectives helps motivate individuals and organizations to do their best.

  • Reviewers
  • Multiple reviewers/raters can be configured for an employee during appraisal. This include Parallel and serial reviewers. This will helps capture formal and informal feedback from multiple sources to provide a rich, well-rounded portrait of your employees.

    Option to change an appraiser manually.

iii) Performance Review /Interview


With self-appraisal, employees can detail their skills/achievements and review the results during each appraisal. You can also have multi-level reviewers and make sure all the reporting heads give their reviews. Once you've consolidated the performance reports, you can complete them with a single click.

  • Appraisal criteria and appraisal month will be published on appraisee’s dashboard. Appraisal notification will be send to appraisee on 1st day of due month. Due month is taken based on appraisal date, usually the month after the joining month every year.
  • Progress of appraisals for the month will be shown on HRs and Appraisers dashboard.
  • HR can see appraiser field blank, if not set.
  • HR can also change appraiser.
  • Self-Appraisal and Performance Reviews - Those whose appraisals are due can do self-appraisal. Immediate reviewer/s set in parallel or serial can do the performance reviews. Reviewers can see the self-appraisal of the apprasiee and performance review of lower-level reviewers. The reviews of higher-level and peers are confidential to employees and to reviewers of respective hierarchy.
  • Performance Rating, Score, Weight, Weighted Score o Appraisee has to complete self-appraisal on or before 10th. 5% of weightage is given for self-appraisal.
  • Appraisers to complete review between 11th and 20th. Appraisers (peers, superior, manager etc) – measure the actual performance, compare with the standards and discuss results

iv) Employee Performance Matrix


The overall employee rating is the weighted average of the reviewers ratings, rating Scale and Rater Types. Formula applied for performance score: Rating% X Criteria_weightage% X Rater types%

v) Recognition Program, Merit Based Salary Increase


  • Management review - Tabular view for management on overall score and impact on salary revisions employee wise.
  • Key Performance Indicators - A weighted average score or weighted grade is calculated for all employees against the reviews.
  • Salary increment disbursal
  • Once the approval of final score is done, Payroll Admin can trigger the increment disbursal manually. This will revise the salary of all those who are appraised based on the weighted score / rating achieved.
  • Percentage of increment will be taken from Pay Per performance definition for each rate-slab.
  • For example, an Outstanding performer will get 20% increment on basic pay. This inturn triggers changes to all basic pay dependent salary elements (calculated with formula). The draft pay revision of all employees will be listed on dashboard for Head-HR approval. Click on the link to modify the values manually. Once any modification is done, HR manager can save the revision to finalize the appraisal revision process.

vi) Reports / KPIs


  • Employeewise – KRA
  • Appraisal Summary sheet