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The performance appraisal process may be carried out by an outsourced organisation, superiors or peers of the employee being appraised, or the appraisee themselves.
Having completed the performance appraisal process employers must find a way to appropriately recognise, reward and remunerate their employees so that the employees continue their employment with the organisation and so that their performance is at the benchmark.
Performance appraisal objectives include the following:
Establishing objectives for the employee for the next period
Feedback about current performance levels
Wages and salary assessment
Recording performance levels to warn an employee of poor performance
Establishing a record to dismiss an employee
Discipline of an employee
Future training requirements
Recognition, reward and remuneration are the desired outcomes of the employment process for any employee.
Recognition and rewards may take many forms as provided by an employer. They include:
wages and salary - award and over-award payments
fringe benefits - expense accounts, low cost loans, mortgage repayments
non-monetary rewards e.g. office location, canteen facilities, motor vehicles, medical benefits
commissions and performance based remuneration - stock issues, bonuses
social based benefits
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