Performance Appraisal Effect on Compensation
- 1 Lebanese American University, Beirut, Lebanon
Abstract
Human Resources function has been evolving throughout the years to reach more effectiveness in the corporate world. Today human resources focus on five major components: recruitment and selection, training and development, pay and benefit, performance appraisal and labor relation. It is worthwhile to mention that Human Resources department works best in a dynamic economy. This article tackles the performance appraisal part and its effectiveness when it comes to compensation. It starts by focusing on the importance of having a clear job description, evaluating employees according to job description using effective job evaluation method and performance appraisal selective methods according to the structure and the field of the company. Linking these tools to different ways of compensating employees and the effectiveness of such actions, problems, diagnostic approach and recommendation of Performance Appraisal (PA) process are covered in this study.
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