ADMS 3490 Study Guide - Final Guide: Performance Appraisal, Merit System, Procedural Justice

• School: York University
• Department: Administrative Studies
• Course: ADMS 3490
• Professor: Parbudyal Singh

Document Summary

This chapter focused on the 3rd element in determining compensation values. It explained how to develop processes for evaluating the performance level of individual employees so that they can be compressed accordingly, and emphasized that accurate evaluation of individual performance is essential for successful merit pay system. You have learned how creating a reliable and valid performance appraisal system is fraught with difficulties and that many firms are dissatisfied with their current appraisal processes. Part of the problem is that linking individual merit pay to performance appraisal (or even use individual merit pay itself) is not appropriate in many circumstances. Performance appraisal can be applied effectively only where performance has scope to vary, where employees can control their performance levels, and where individual performance can be separated out and accurately assessed. In addition, you have learned that in value that evaluating individual performance in a team context is an especially thorny matter, although sometimes necessary.