Discuss the benefits, challenges and tradeoffs of pay-for-performance, or merit pay. How would a pay-for-performance policy support the organization’s strategic goals? What factors should be considered in evaluating the effectiveness of this practice?

b) Select three methods for conducting an evaluation of an employee’s performance and discuss the advantages and disadvantages for each method. Discuss what level of employee (management, administrative, clerical, laborer, etc.) you would use each method to evaluate.


Heathfield (2019). Performance Management Process Checklist

Heathfield (2019). Why Employee Performance Appraisal Does Not Work 

Lumen Learning (nd). Designing a High Performance Work System Retrieved from

Heathfield (2019). The 5 Goals of Employee Performance Evaluation

Bacal (nd) “A Performance Management Bias and Error Glossary” (HTML) The Performance Management and Appraisal Resource Center : Retrieved from (Very brief definition of terms that affect performance management)

Heathfield (2020).  4 Common Problems with Performance Appraisals

Lumen Learning (nd). Performance Appraisals  Retrieved from

Performance and Rewards

Heathfield (2020).  The Advantages and Disadvantages of Merit Pay

Petersen (2019). Advantages and Disadvantages of Pay-for-Performance Policies

HR Basics: Performance and Rewards

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