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Hello Talal,
The first step in developing a Performancen Appraisal System is by understanding what everyone doesin the organization. You must have an understanding of their JDs (Jod Descripyion) and their success factors. Depending on the industry it could be management, Financial, Customer, Team Work, Sales Target amongst others.
This will also help you decide the metrics to be used in your PMS (Perfromance Measurement System), which could be Balance Score Cards, 360 Degree, Two-Way Assessment, Cascading goals, and Company's Core values.
I hope this answers your question.
Thank you
1. Understanding organization short and long-term goals
2. Understand the gaps of Departments and roles
3. Evaluate the competence mapping by JD and role analysis
4. Understand the GAP
5. Create the Basic Job objectives as short-term objectives
6. Redesign the JD and acceptance by the staffs
7. Bench Mark them and inform all the key staffs
Write an algorithemn for the whole process