Decoupling appraisal from pay increases LO19825

Eugene Taurman (
Thu, 12 Nov 1998 20:05:53 -0600

Replying to LO19663 --

At 12:48 PM 10/28/98 -0500, you wrote:
>Was: Employee Development Plans LO19595

>The president of this company has the mental model that performance
>reviews must be tied to salary increases. In fact, that's the reason for
>them, right? I hope you can see where I'm coming from. What I need help
>with is:

>* What's wrong with coupling performance reviews to pay increases?

In my mind the purpose of performance reviews is to promote an exchange
between the manger and the worker. if wage increase are closely tied to
the meting it usually becomes a time for the reviewed to put on a show and
tell the boss how great he/she is. The reviewer must prepare to justify
his/her position about the employee. We have the basis for conflict
confrontation and destroying communication. That is not the right
atmosphere for exchange. A review is tough to do even without this

It is a system that stretches the limits of trust.

>* If they're de-coupled, how does an organization give pay increases?

There are a number of options
Time in service in pay grade has been used by Japanese and Unions
in the US.
Raises are mostly tied to time and economic condition of the
company so making the raise simple a function of time in grade is not that
far form reality.
Move from pay grade to pay grade only at time of promotion and
accepting more responsibility

The supervisor simply make decisions separate from the review

>* What are the reasons for formally scheduled performance appraisals?

Improve communication
It is one way management can feel that the employee and the
supervisor talk.
Promote improvement

>What other models exist to break the mold?

Eugene Taurman

What you are is determined by the thoughts that dominate your mind.
Paraphrase of Proverbs Ch 23 vs 7 KJV


Eugene Taurman <>

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