The statement "It's not fair to pay a bad employee the same amount of money as an excellent employee" exemplifies the need for accurate performance appraisals in:
A) determining salary increases
B) making promotion decisions
C) employee training and feedback
D) training needs assessment

Question

Quizplus · Accepted Answer

Accurate performance appraisals are crucial in determining salary increases as they help in assessing an employee's productivity, quality of performance, and contribution to an organization. In cases where an average or poor performer is compensated at the same level as a high performer, it could demotivate the latter, who may feel undervalued and start searching for better opportunities elsewhere. Therefore, performance appraisals help to identify the strengths and weaknesses of each employee and make compensation decisions accordingly.

The Statement "It's Not Fair to Pay a Bad Employee