KPI Assignment by Role/Employee
These ratings measure dependability, initiative, attitude, etc., ranging from Excellent to Poor or some similar scale. These results are used to calculate the employee's overall performance.
Use of Rating Scales:
- Standardizes performance evaluation
- Reduces bias and subjectivity
- Makes feedback clearer for employees
- Enables comparison across employees or departments
- Supports data-driven HR decisions (e.g., training needs, promotions)
Sample Rating Format
| Performance Category | Point | Score Range | Preferred Action | Increment(%) |
|---|---|---|---|---|
| Outstanding | 5 | 91-100 | Increment With Promotion | 15% |
| Superior | 4 | 81-90 | Increment | 10% |
| Good | 3 | 71-80 | Increment | 7% |
| Average | 2 | 61-70 | No Change | - |
| Unsatisfactory | 1 | 1-60 | No Change | - |
Key Assignment by Role/Employee
Performance appraisals can be broken down into four distinct types:
Regular Assessment
The employees rate themselves in categories such as measurable targets at the beginning of the appraisal period. Regular KPI-based appraisals help create a high-performance culture where employees are held accountable for their goals. They are particularly effective in sales, operations, customer service, and other roles where performance is tied to clear metrics. It’s basically used for Monthly, quarterly, half-yearly, or annual.
Sample Rating Format:
| KPI | Weightage | Target | Achieve | Weightage Score | Comments |
|---|---|---|---|---|---|
| Sales review achieve | 30% | 10000 | 1100 | 30% | |
| Projects completed on time | 30% | 5 | 4 | 25% | |
| Number of leads converted | 20% | 10 | 8 | 15% | |
| Yearly Sales | 20% | 100000 | 60000 | 12% |
Total: 100%
82%
Here are the key benefits of regular assessment:
- Objective and Transparent: Reduces subjectivity and bias in evaluations.
- Motivates High Performance: Employees clearly know what is expected.
- Aligns with Strategy: Ensures everyone contributes to broader goals.
- Facilitates Reward Decisions: Basis for performance bonuses or promotions.
Competency Appraisal
Competency Appraisal is a structured evaluation process that assesses an employee's skills, behaviors, and attributes (i.e., competencies) against predefined standards required for their role or for career progression within the organization. It’s basically used for annually.
Sample Rating Format:
| KPI | Rating | Comments |
|---|---|---|
| Leadership | 4 | Demonstrates good team motivation |
| Conflict Resolution | 3 | Needs to improve on handling disputes |
| Decision Making | 4 | Makes timely and sound decisions |
| Communication | 5 | Could improve clarity in team briefs |
Here are the key benefits of competency appraisal:
- Holistic Development: Focuses on skills, behaviors, and attributes beyond job tasks.
- Alignment with Organizational Goals: Ensures employee behaviors match company values.
- Improved Performance Management: Provides clear expectations and actionable feedback.
- Identifies Training Needs: Pinpoints gaps for targeted learning and development.
- Increases Employee Engagement: Encourages career growth and motivation.
- Supports Succession Planning: Identifies future leaders based on competencies.