Dear Saujanya,

The most popular methods used in the performance appraisal process include the following:

1.Management by objectives
2.360-degree appraisal
3.Behavioral observation scale
4.Behaviorally anchored rating scales

Now you need to decide which one you would like to implement in your company.

Though first and second one are mostly used by the companies.

Regards,

Monalisa

Saujanya,

Appraisal is a tool to evaluate performance on the job and also address gaps with the expected behaviors and skills. So, I would recommend the following steps :

1) Since the number of employees are only 10 (across depts),. You could review their JD's or Competencies required for them to perform their tasks

2) You could collate questions that are action oriented that are directing towards expected behaviors on the job and weigh it with a 5 point scale (Does not meet expectations to Substantially Exceeds Expectation) which is commonly used as a measure.

3) Also, you could introduce the values/vision of the organization into the questionnaire as a common question across all levels.

4) Last but not the least, make sure you review and get a consensus with the managers/CEO to see what all the competencies and values you are measuring as part of the appraisal

5) Educate the manager's and the employees about the format (Training) so that they understand how they approach these questions being asked.
6) Request for a self-appraisal and then get the manager to review the appraisal of each individual.

7) Finally schedule a date for the individual to sit down with the manager and discuss the feedback from the appraisal. Also it could be a goal-setting exercise for the next year.

Hope this helps..

thanks prasan.It was informative.