New Performance appraisal at FoodPak Pvt Ltd.! Vikas had recently joined as a Sales Manager in one of the largest industrial engineering firms, EoodPak Pt Ltd. in India. The firm does turnkey projects manufacturing and installing food processing and packaging machineries for its clients. When Vikas joined there was no formal anpraisal process as the firm was relatively small with about 300 office staff. While the informal aporaisalwas possible (though not always liked by all) in a small company context, with its growth and expansion, management felt the need to install a formal appraisal process. Vikas was asked to nlan and implement it in his unit (along with few managers in his unit) and depending on the Success, it would be rolled out company wide. All the managers asked their subordinates to put in their best to meet the company expectations as a formal appraisal is being put in place. Vikas made aguick study of all the jobs and found certain common expectations across the jobs for his performance criteria. He came out with the following performance parameters and corresponding department rating scale. At the end of the year the following criteria was used in evaluation of the employees. Criteria Below standards Meets standards Above standards Quantity of work Quality of work Innovativeness People management turn asked allof the managers in the department to He shared with his departmental head and he in bell curve was used in placing employees in 4 use this format for rating their subordinates. A average performer - 30%, Average performer different categories. Top Performer - 10%, Above with top the appraisal are used for paying variable pay 40%, Below average- 20%. The results of - 30%, performer current salaries, above average performers getting more than 50% of their average with below used in promotiondecisions Average-10% and Below average-Nil. It was also a mini However after the first year process, there was performers asked to look out for other jobs. generally accusations of favouritism and unfair process and revolt by employees. There were various were Vikas, what the new appraisal system is a disaster. If you the feeling was that introduction of Would you have done and how would you go about the process? for class discussion Prepared by Prof TN Krishnan as a basis