For anyone with remaining doubts about using textbook performance appraisals, this article on Forbes.com should push you over the edge. We should try to encourage employees to develop their technical and behavioral competencies all the time, without the emotional anxiety associated with “reviews” and “appraisals” that are designed to be punitive rather than constructive. This can be accomplished with an excellent employee development program that is divorced from compensation. If you want to truly pay for performance, take the time and make the effort to establish outcomes goals that are objectively measurable in terms of quantity, quality and timeliness, and link the extent to which they are achieved to variable pay, or possibly base pay if you can differentiate enough to make them motivational.
– Shari Dunn, Managing Director
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