Dear All,

I am seeking all of yours valuable suggestions / answers to the following questions :

[1] Is Indian IT industries give increment on half yearly basis [after 6 months] or yearly basis. You may please also give examples of the companies who give this.

[2] How to give bonus to the employees. I am only aware of Diwali bonus which is given yearly. Besides this, I dont know how to give or calculate other bonus etc.

[3] What is the difference between subjective and objective parameters. Marking [1 to 10] is subjective or objective and likert scale is subjective or objective. Please clarify?

I look forward to receiving all of yours valuable suggestions / answers. I am preparing Performance Appraisal system for my company and this is the main reason i require this information. I need to give different options to my management. I am designing Performance Appraisal system using Likert scale.

Please help me in this!

Regards,
Amana

Hi Amana,

This is Shanaz - HR consultant.

1. Appraisals normally go with salary hike and the frequency of appraisal is based on the frequency of finalisation of accounts. Basically, how frequenty does the Organisation measure its own performance during a year. As per industrial standards, IT companies appraise once in 6 months.

2. Statutorily speaking, bonus is payable to employees only where the basic salary of the employee is less than or equal to Rs.3500/-. The amount of bonus payable is Rs.2500/-. But, as you are in a IT company, bonus can be paid in two ways, either as a monthly component or as a lumpsum amount either during Diwali / New year. Most of the IT companies are paying bonus on a monthly basis to avoid a huge cash outflow at a stretch.

3. Appraisals are based on Objectives and where the objective is achieved , rating of 1-10 is possible and where actions have been taken to perform an activity that benefits an organisation though it is not part of an objective can be measured subjectively (i.e. likert scale). Therefore, your appraisal can be a combination of both.

Thanks