Appraisal season presents a special kind of headache for both managers and the managed alike.

HR practitioners will insist that appraisals are all about evaluating an employee's performance vis-à-vis set performance parameters — the ‘key result areas'. An appraisal, they insist, is done to evaluate an employee's skills and competencies with reference to his or her job role. It will look at how well a person meets the objectives set for his or her function. It will also factor in qualitative and subjective measures, including behaviour, acceptability, leadership skills and potential.

An increment, although it is strongly linked to the appraisal-based evaluation, is driven more strongly by performance metrics, and gives greater weightage to measurable deliverables, such as targets.

Many organisations split the two. An appraisal is used to decide on changes in job roles — promotions — while a target achievement metric drives the monetary rewards.

The trouble is, for most of us, a promotion without a raise can be often meaningless. On the other hand, even a good increment is made that much better if it is accompanied by a promotion.

During times of economic uncertainty, or a company's downturn, this issue becomes critical in staff motivation and retention.

So which works better? A great appraisal — or appraisal system? Or a reward system which fairly and transparently recognises and rewards performance?

Send in your views, in not more than 200 words, with name, organisation and contact details by May 17. The best responses will be published.

>thenewmanager@thehindu.co.in

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