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Performance Appraisal:

* Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

 

* Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization.

 

* Performance appraisal rates the employees in terms of their performance.

 

* Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals.

 

* If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance.

 

* It helps to align the individual performances with the organizational goals and also review their performance.

 

* And it takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.

Market Survey:

* Organizations have to bridge the gap between the industry standards and their salary packages.

 

* They cannot provide compensation packages that are either less than the industry standards or are very higher then     the market rates.

* For the purpose they undertake the salary survey.

* The Salary survey is the research done to analyze the industry standards to set up the compensation strategy for the organization.

* And the analysis is done on the basis of certain factors defined in the objectives of the research.

 

Objectives of Salary Survey:

• To gather information regarding the industry standards

• To know more about the market rate i.e. compensation offered by the competitors

• To design a fair compensation system

• To design and implement most competitive reward strategies

• To benchmark the compensation strategies.

 

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