Range of grade and pay systems / structures, their ‘fit’ for organisational context and link to strategy 1. Pay structure (3 or 4) Broad-banding Job family Spot rates 2. 2 Performance Appraisal Armstrong (1998) points out that the performance appraisal schemes is essential for organization which often contain ratings of performance factors, such as volume, quality and knowledge of work, dependability, innovation, staff development and communication and an overall rating. Clive Fletcher (1997) states that the first step to appraise performance is to decide on the aims of appraisal from both organization and participants’ perspective.
The appraisal principle today stresses the importance of fairness within organization. From organization perspective, there are five basic appraisal principles of performance, which are improving performance, motivating staff, succession planning, identifying potential, promoting manager-subordinate dialogue and formal assessment of unsatisfactory performance. While participants will pay more attention to the accurate and fair of assessment, the quality of their current relationship with appraiser, and the influence of appraisal on their reward and welfare.
David A. Hume (1998) concludes six most common performance appraisal systems which are most effective are as follows: • Appraisal by superior’s superior • Appraisal by personnel staff • Appraisal by peers • Appraisal by subordinates • Self- Appraisal • Appraisal by assessment centre These performance appraisal systems can be realized by documentation such as rating (alphabetical/numerical/graphical), forced choice rating and free/controlled written report.
What’s more, interview through tell and sell, tell and listen and problem solving style. Finally, follow-up the two methods mentioned above to continually assess the performance of staff and managers. DIYS performance appraisal can apply this system to all of managers and staff, and relate the assessment to their performance pay. In addition, Ward, Peter. (1997) claims that other assessment methods employee survey, ability test, personality inventories, development centers and 360-degree feedback could be integrated as well.