TITLE:
Performance Appraisal Effect on Compensation
AUTHORS:
Jacques Touma
KEYWORDS:
Performance Appraisal (PA), Key Performance Indicators (KPIs), Compensation, Effective Performance
JOURNAL NAME:
Journal of Human Resource and Sustainability Studies,
Vol.10 No.1,
February
24,
2022
ABSTRACT: Human Resources function has been evolving throughout the years to reach
more effectiveness in the corporate world. Today human resources focus on five
major components: recruitment and selection, training and development, pay and
benefit, performance appraisal and labor relation. It is worthwhile to mention
that Human Resources department works best in a dynamic economy. This article
tackles the performance appraisal part and its effectiveness when it comes to
compensation. It starts by focusing on the importance of having a clear job
description, evaluating employees according to job description using effective
job evaluation method and performance appraisal selective methods according to
the structure and the field of the company. Linking these tools to different
ways of compensating employees and the effectiveness of such actions, problems,
diagnostic approach and recommendation of Performance Appraisal (PA) process
are covered in this study.