Why should performance reviews and pay reviews be done separately?

Fill in the blank(s) with the appropriate word(s).


Answer will vary

Performance appraisals generally fulfill two important functions. The first focuses on identifying individual strengths and weaknesses and developing action plans for improving performance. The second involves how well the person has performed in order to determine salary adjustments. These two functions are not compatible. Employees are eager to find out about the pay adjustment and tend to tune out constructive feedback. Managers are more concerned with justifying their decision than engaging in a meaningful discussion on how the employees can improve their performance.

Business

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