Cs: tying bonuses to performance ratings at rbc. > rbc created its qpi quality performance incentive plan which applied to all emps. The annual bonus pool depends on if the bank meets certain objectives, and then is split among the emps based on their performance ratings. Less than satisfactory emps usually don t receive any. Performance appraisal: a method to asses the overall performance levels of individual emps: experiences and reasons for performance appraisal. > cs: pratt and whitney [jet engine manufacturer] were dissatisfied with their performance appraisal system like many companies, kept changing it. > 21st century: 90% of hr managers felt their pa system should be changed or abolished. (95% emps) > 90% of med/large cnd firms use pa systems. > companies want to use pa systems but many cant find the right fit. Administrative reasons: identifying individuals who are not performing to standards to improve/remove them or to identify who is worth keeping/promoting.