Use of Of Employee Appraisals to Validate the Remuneration System
Basically there seem to be two reasons / goals of appraisal systems.
1. To give a feedback to appraisee so that he/she may improve and follow the path desired by appraising authorities
2. To rationalize differential remuneration system by bringing in objectivity and linking it with performance.
When an organization tries to do both, it ends up doing one better than the other. In fact it would be better to have two systems for these two objectives
In Hindi we have a saying "Duvidha mein dono gaye, maya mili na ram". It means when you are in a dilemma, you neither get wealth nor God.
Should the appraisal system try to do both and end up causing a mess or should there be some other scheme to meet other objectives?