6How Do We Pay People Without Appraisals?

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The answer to the question managers so often ask of behavioral scientists—”How do you motivate people?”—is, “You don’t.”

Douglas McGregor, The Human Side of the Enterprise

Human beings are more alike than unalike. Whether in Paris, Texas or Paris, France, we all want to have good jobs where we are needed and respected and paid just a little more than we deserve.

Maya Angelou

Many organizations use appraisal to drive pay decisions, or at least this is the common belief. They use appraisal because they want to tie contribution to pay. They do this because they believe this will motivate people to do their best. They further believe that paying according to contribution is only fair, it’s the right ...

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