Job analysts and compensation managers have often sought to examine relationships between job characteristics and wages.
One of the strengths of job evaluation systems like this is they typically exhibit high levels of internal consistency within the hierarchy of an organization. That is, job related factors that are important to an organization will be reflected in the system with greater weights contributing to predicted salaries.
Most organizations use rating scales as a basis for appraisals, which result in distinct performance ratings for each employee. With proper training, translation, and application, the use of more ratings allows for better alignment to individual performance levels given the inherent variability of employee performance.
Wrapping up an appraisal requires engaging the employee in a positive discussion to finalize a rating (or score) and provide feedback for the overall performance.
Performance management requires thoughtful, well-designed appraisals with on-going feedback, coupled with financials rewards aligned to individual contributions and business outcomes.
