Introduction
Managing salary increments and appraisal budgets is one of the most critical responsibilities for HR teams and business leaders.
Without proper budgeting controls, organizations may exceed their financial limits, create inconsistencies in compensation decisions, or lose visibility over how increments are distributed across teams. This is where budgeting within the Performance Management System (PMS) in uKnowva HRMS becomes highly valuable.
By enabling PMS budgeting, organizations can define clear increment limits for business heads, monitor how much budget is utilized during appraisal cycles, and ensure that all salary decisions remain aligned with company policies.
In this article, you will learn how to configure PMS budgeting settings and manage business head ratings effectively within uKnowva HRMS.
Step 1: Access the KRA and Appraisal Ratings Configuration
To begin, go to your uKnowva HRMS instance and navigate to the top-right corner of the page where your profile icon is displayed.
Click on the profile icon to open a drop-down menu and select the uKnowva Configuration option.
This will take you to the configuration panel where all system-level settings are managed.
From the side menu, click on the App Manager and locate the KRA and Appraisal Ratings option.
Once you click on it, a configuration pop-up will open where you can manage PMS-related settings for budgeting and appraisal control.
Step 2: Enable PMS Budget Visibility and Restriction Settings
Once inside the configuration panel, start enabling the budgeting-related settings. The Enable PMS Budget Visibility option allows business heads to view their allocated budget while performing employee ratings, helping them make informed decisions.
Next, configure the Restrict Submission if the Budget is Exceeded setting. When this option is set to yes, the system ensures that users cannot submit appraisal ratings if the total increment exceeds the allocated budget.
This acts as a control mechanism to maintain financial discipline. After configuring these settings, click on the save button to apply the changes.
Step 3: Navigate to Business Head Ratings and Manage Salary Budget
After enabling budgeting, return to the main interface and go to the side navigation panel. Click on the My Performance menu and select the Business Head Ratings sub-menu.
This page displays the rating status of all business heads in your organization. Since budgeting is now enabled, you can proceed to allocate budgets by clicking on the Manage Salary Budget button.
This will open the Salary Budget page, where you can view and manage budget allocations.
Step 4: Create and Configure Salary Budget for Business Heads
On the Salary Budget page, you will see detailed information such as Business Head, Total Active Employees, Employees Eligible for Appraisal, Total Salary of Eligible Employees, Increment Budget (%), and Total Allowed Increment Amount.
To create a new budget, click on the plus (+) button, which opens a pop-up window.
Here, you need to select the Appraisal Type and choose the Business Head. The system will automatically calculate employee-related data such as the total number of employees and the eligible salary.
You then need to enter the Increment Budget percentage, based on which the system will calculate the Total Allowed Increment Amount.
Once you verify all details, click on the save button to finalize the budget configuration.
Step 5: Perform Business Unit Ratings Within the Allocated Budget
After setting up the budget, go to the My Performance menu again and select the My Business Unit Rating sub-menu.
This section allows business heads to rate employees within their units.
While entering the hike recommendation percentage for employees, the system automatically calculates and displays important values such as Base Salary Total, Approved Budget, Budget Utilized, and whether the budget is exceeded or still available.
This real-time calculation helps ensure that all ratings stay within the allocated budget limits.
Step 6: Submit Ratings and Enforce Budget Compliance
Once you complete the rating process, click on the Confirm & Submit Ratings button to finalize the appraisal.
If the total increment exceeds the allocated budget and the Restrict Submission if Budget is Exceeded setting is enabled, the system will prevent submission until the values are adjusted within the allowed limit.
This ensures strict compliance with the defined budget and prevents overspending during the appraisal cycle.
Conclusion
That’s it!
You’ve now successfully configured PMS budgeting and managed business head appraisal ratings in uKnowva HRMS.
By following this process, you ensure that salary increments are planned within defined budgets, business heads have clear visibility into their financial limits, and appraisal submissions remain compliant with organizational policies.
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