This Annual Performance Appraisal System document serves as a crucial organizational tool for Malaysian companies, providing a structured framework for evaluating employee performance, setting objectives, and managing career development. It is designed to comply with Malaysian employment legislation, including the Employment Act 1955 and related regulations, while incorporating best practices in performance management. The document should be implemented when an organization needs to establish or update its performance evaluation processes, ensuring consistency, fairness, and transparency in employee assessments. It contains comprehensive guidelines on evaluation criteria, rating methodologies, review procedures, documentation requirements, and appeals processes, making it essential for maintaining standardized performance management practices across the organization.
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1. 1. Introduction: Overview of the performance appraisal system and its objectives
2. 2. Scope and Application: Defines who the appraisal system applies to and any exceptions
3. 3. Definitions: Defines key terms used throughout the document including performance metrics, rating scales, and technical terminology
4. 4. Roles and Responsibilities: Outlines the responsibilities of employees, supervisors, HR department, and management in the appraisal process
5. 5. Appraisal Cycle: Details the frequency, timing, and duration of performance reviews
6. 6. Performance Evaluation Components: Describes the core elements being evaluated (KPIs, competencies, behaviors, etc.)
7. 7. Rating Methodology: Explains the rating system, scoring criteria, and evaluation standards
8. 8. Review Process: Step-by-step procedure for conducting performance reviews
9. 9. Documentation Requirements: Specifies required forms, evidence, and documentation for the appraisal process
10. 10. Appeals Process: Procedures for employees to challenge or appeal their performance ratings
11. 11. Confidentiality: Guidelines for handling and protecting performance-related information
12. 12. Review and Amendment: Provisions for periodic review and updating of the appraisal system
1. Performance-Based Rewards: Include when the organization directly links performance ratings to compensation or benefits
2. Training and Development: Include when the appraisal system is integrated with employee development programs
3. Remote Worker Evaluation: Include when organization has remote or hybrid workers requiring specific evaluation criteria
4. Probationary Employee Assessment: Include when different criteria apply to employees during probation
5. Department-Specific Criteria: Include when different departments require unique evaluation criteria
6. Peer Review Process: Include when organization implements 360-degree feedback system
1. Schedule 1: Performance Appraisal Form: Standard form template for documenting performance evaluations
2. Schedule 2: KPI Matrix: Detailed list of Key Performance Indicators and their measurement criteria
3. Schedule 3: Competency Framework: Detailed description of competencies and behavioral indicators
4. Schedule 4: Rating Scale Guide: Detailed explanations and examples for each rating level
5. Schedule 5: Timeline and Deadlines: Annual calendar of appraisal-related activities and deadlines
6. Appendix A: Self-Assessment Form: Template for employee self-evaluation
7. Appendix B: Development Plan Template: Format for documenting employee development goals and actions
8. Appendix C: Appeal Form: Standard form for submitting performance rating appeals
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