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1. Parties: Identification of the employer and employee, including full legal names, positions, and relevant employee identification numbers
2. Background: Context of the performance appraisal system, its purpose, and alignment with company objectives
3. Definitions: Clear definitions of key terms used throughout the document, including performance metrics, rating scales, and evaluation periods
4. Purpose and Scope: Detailed explanation of the performance appraisal's objectives and who is covered by the system
5. Evaluation Period: Specification of the frequency and timing of performance reviews (annual, semi-annual, quarterly)
6. Performance Criteria: Detailed description of the performance metrics, KPIs, and competencies being evaluated
7. Evaluation Process: Step-by-step explanation of how the appraisal will be conducted, including preparation, meeting procedures, and documentation
8. Rating System: Explanation of the rating scale and performance levels used in the evaluation
9. Documentation Requirements: Overview of required forms, reports, and record-keeping procedures
10. Review and Appeal Process: Procedures for employees to review and appeal their performance evaluations
1. Development Planning: Include when the organization wants to emphasize career development and training opportunities based on performance outcomes
2. Compensation Link: Include when performance evaluations are directly tied to salary adjustments, bonuses, or other financial incentives
3. Remote Work Considerations: Include when employees work remotely and specific adaptations to the appraisal process are needed
4. Language Provisions: Include when the workplace operates in multiple languages and specifies the language(s) in which appraisals will be conducted
5. Special Circumstances: Include when addressing specific situations such as long-term illness, maternity leave, or other extended absences
1. Schedule 1: Performance Evaluation Form: Standard template for documenting performance evaluations, including all evaluation criteria and rating scales
2. Schedule 2: Competency Framework: Detailed description of core competencies and behavior indicators used in the evaluation
3. Schedule 3: Development Plan Template: Template for documenting agreed-upon development goals and action plans
4. Schedule 4: Timeline and Key Dates: Annual calendar of performance review cycles and key milestone dates
5. Appendix A: Rating Scale Guidelines: Detailed explanations and examples for each rating level to ensure consistent evaluation
6. Appendix B: Appeal Process Flowchart: Visual representation of the steps involved in the appeal process
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