Organizations develop performance guide charts to introduce performance-linked pay programmes. Such charts are prepared after performance evaluation and tentatively cover degree of performance, i.e., the performance rating, recommended rate of increase in different quarters (where organizations introduce quarterly review of performance), etc.
Notice here that employees have been ranked with a 5-point scale. Each employee's present performance ranking has been mapped using this scale and the recommended quarterly raise in the compensation has been indicated. Also note that employees do not get any raise, when they fail to meet the expectations. A tentative performance guide chart is presented in Table 8.1 below.