The organization is responsible for providing information about its mission, policies, and plans and for providing support for employee self-assessment, training and development. The programs are designed to enable employees to match their needs for growth and development with those of the organization. Through workshops and counseling, employee strengths and needs are identified and career paths are selected. Chapter 8 A proper planned and effectively utilized performance appraisal program should contribute to improved employee performance. Performance appraisal programs and merit rating systems are not new or unique to organization.
Successful organizations use performance appraisals as a basis for HR activity.
Total quality management has cause many organization to rethink their approach to performance appraisals. The compensation paid to employees represents a major cost to employers. For employees, the compensation they receive affects how they live. All organizations should have a formal compensation policy explaining the objectives of the compensation program and how it should be administered. Back to top Chapter 10 Incentive plans, also called variable pay plans, have grown significantly over the past years.