Employee Performance Appraisal System

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Pay represents by far the most important and contentious element in the employment relationship, and is of equal interest to the employer and employee. For the employer, it represents a significant part of his costs and is increasingly important to his employees' performance and competitiveness. For the employee, it is essential to his standard of living and is a measure of the value of his services or performance. To link pay to performance, organizations must have a comprehensive, standardized, well-communicated and implemented performance appraisal system that addresses core competencies that “have a proven impact on business” (Wiscombe, 2001). In this regard, organizations have implemented various types of compensation systems to enhance…show more content…
Increased cooperation leads to healthier working relationships and a friendlier work environment which would lead to happier and more efficient personnel. Under the above incentive systems, the group is rewarded instead of an individual for its performance. It is most applicable and has shown to be effective for organizations with many employees performing the same or similar task. Such incentive systems are easier to measure and evaluate which is of high importance for the organization. However, team based performance can result in conflicts among the group members especially when they begin to compete with each other rather than cooperate. There is also the issue of “free-rider” in which team-members may put in reduced effort but benefit from the reward when the goal is achieved by the other members in the…show more content…
The traditional pay systems in most public sectors have been a system of grades and seniority. However, the onset of Public Sector Reform in the Commonwealth Caribbean under the New Public Management (NPM) in the 1990s brought about significant changes in an effort to increase efficiency and productivity in the various ministries. One of these key areas was the performance management and compensation systems. Under the NPM, Caribbean countries were required to improve the performance of state institutions through better pay and incentives. For example, as recent as last year, St. Kitts Prime Minister Dr. Timothy Harris announced plans to introduce Pay-for-Performance incentive scheme for government workers to improve efficiency and enhance productivity in the country’s public sector which is part the government’s strategic vision. The Jamaican government introduced this system in its education system in an effort to motivate the teachers. It was observed that teachers got more involved in activities and programs that immensely aided in the students realizing their full potential. The T&T government also adopted this system in its various ministries and has already begun to see the benefits as there has been a positive change in the public sector workers attitudes, an improvement in their performance

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