Given below is the letter issued by ABC Limited on 1st April 2010 along with salary revision details. The revision was done on the basis of attached Appraisal Form. Considering the contents of this letter, please take a critical look at the Appraisal form and suggest changes/additions, if necessary.

Dear Colleague,

The last quarter of 2009-2010 has witnessed very hectic activity in the organization. You are aware that we have implemented many strategic decisions including change of name from ABC Pvt. Ltd. to XYZ Pvt Ltd. The new identity is of a global professional organization in the area of Energy and Environment Conservation.

The company has set challenging targets for itself for the years to come. In the coming year, we have plans to achieve revenue of 200 crores and our manpower strength will grow from 300 to 350 employees.

This can be achieved by each one of us achieving our targets through committed and focused efforts. We need to raise our own bars of performance.

In line with our goals, we have revised our Vision and Mission statements as mentioned below.
Vision

“To be among the global leaders in the conservation of Energy and the Environment"

Mission

"· To help our customers improve their performance by reducing their energy costs and to build a company of energetic, dynamic and exceptionally focused professionals.”

There are a number of HR initiatives that we took up to ensure that the HR practices followed by us are in line with the global organizations and best in class for our type of industry. These were done by Consultants of repute with inputs provided by us.

The grade structure has been made simpler and entry points defined. All the employees have been fitted into the new grade structure based on their experience and role in the organization. This has been done after a series of discussions with the consultants and each HOD. The entitlements as per the new grade structure have also been prepared. While doing this, extreme care has been taken so that the employees do not get impacted negatively.

The company also proposes to implement the Variable Compensation with effect from this year that is 2010-2011, which will be based on the performance of the company and your achievement of the KRAs which will be defined for the year. It is important that the KRAs for each individual in the organization are defined in consultation with the HOD and HR, by the end of April’ 2010. The same will be the basis for computation of Variable Compensation. (Please ensure that the same is done otherwise you are required to escalate the same to me).

We propose to take up many other initiatives during 2010-2011; details of the same will be communicated to you.

Wishing you all the very best for a great year ahead with XYZ.

7yRegards

Head-HR