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The Performance Appraisal Tool Kit by Winston Tan, Paul Falcone

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CHAPTER

3

Compensation and Performance Measurement Mechanics: Your Technical Look Under the Hood

THIS CHAPTER WILL DISCUSS tying compensation planning to merit budgets, systems design issues including compa-ratio evaluation, and pay progression trending and analysis. So put your math hats on and join us for a behind-the-scenes look at compensation planning mechanics.

Essentially every company uses performance appraisal as the delivery mechanism between an employee pay action and the corporate compensation plan. If the compensation plan is not administered properly, the performance system will not distribute compensation adequately. Miss the mark at delivery and the entire performance process will be perceived as flawed when the problem may actually ...

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