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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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37

Making Calibration an Integral Part of a Performance-Appraisal System

DICK GROTE

Grote Consulting Corporation

In most organizations, the performance-appraisal rating is a major factor in determining the amount of an individual’s salary increase. Appraisal ratings must be accurate. But are they?

We all remember from our school days that some teachers were hard graders and others were easier. So how do we eliminate this “tough grader/easy grader” phenomenon in the workplace and make sure that all appraisal ratings really are accurate? How do we make sure that regardless of the supervisor rating, a 3 is a 3 is a 3?

The Problem

Performance appraisal affects almost everyone who works for an organization. There is probably no business practice ...

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