Performance appraisal results provide a basis for rational decisions regarding pay adjustments.
Most managers believe that you should reward outstanding job performance tangibly with pay
increases. They believe that the behaviors you reward are the behaviors you get. Rewarding
behaviors necessary for accomplishing organizational objectives is at the heart of a firm’s strategic
plan. To encourage good performance, a firm should design and implement a reliable performance
appraisal system and then reward the most productive workers and teams accordingly