Performance Appraisal System Design

Added Jul 2026 3 design docs

In most young Indian companies the annual appraisal is a conversation nobody prepares for and a hike percentage nobody can explain. Everybody gets roughly the same increase, the strongest performers conclude that effort is invisible, and the weakest conclude that nothing needs to change. Fixing this is not a matter of buying software; it needs a designed system in which goals are set in writing, ratings are earned against evidence, hikes follow the ratings, and disagreements have somewhere to go.

The intern designs that system for Aarambh Learning, a fictional Bengaluru ed-tech firm with 68 employees and a ₹4.1 crore payroll. They write a goal and competency framework in google-docs with weighted KRAs and behaviourally anchored rating scales, build the self, manager and peer appraisal forms, then construct an excel model that scores all 68 employees, places them on a nine-box grid, converts ratings into hike percentages through a matrix, and reconciles the total against a 9 percent increment budget. A calibration kit, a PIP process, an appeal route and an employee FAQ hub in notion complete the rollout.

Appraisal design sits at the centre of HR work and is where most interns have nothing to show. Finishing this project the intern can explain weighted scoring, rating distribution debates, calibration, nine-box talent mapping and budget-constrained reward decisions, with a documented system to point at. It is a strong answer to the interview question of how you would make an appraisal fair, and useful preparation for any compensation or HR business partner role.

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